NWMR: Selling a vehicle out of state

welly01 · August 2014

Has anyone sold anything large, like a vehicle, to someone in another state? DH is selling his truck and has a buyer out of state. He has a signed Bill of Sale, but he is planning to just overnight the title and the buyer will overnight the cashier's check. We've verified his address and will have a copy of his driver's license. I'm so nervous for DH to do this and I feel like there must be a better way.

Does anyone have any experience with stuff like this or any suggestions on how to handle this transaction so both parties are protected?

Amelia4 · August 2014

I haven't done anything like that, but I wouldn't send the title until I got the cashier's check. How is the seller getting the vehicle? Can't the check and title be swapped as the same time as the vehicle and keys are handed over?

welly01 · August 2014

Amelia4 said:

I haven't done anything like that, but I wouldn't send the title until I got the cashier's check. How is the seller getting the vehicle? Can't the check and title be swapped as the same time as the vehicle and keys are handed over?

That's what I've been telling DH. The seller hasn't given DH info yet on how the vehicle will be shipped but I had the same idea. Maybe the freight company can act as a go between to accept the title and hand over a check. I just don't want DH to make an expensive mistake.

We've already checked and the bank issuing the loan for the truck won't accept the title in exchange for a cashier's check since location is different.

Amelia4 · August 2014

Your comment reminds me. Once you get the check, I'd call the issuing bank to verify the cashier's check is legitimate before handing over or mailing the title. It's rare, but those checks have been forged. Good luck!

justjinny · August 2014

We bought a car sight unseen out of state before (DH is into old VW's & it was a project car). We were stupid about it and I wouldn't do it again even though it all worked out ok.

I think we sent a check for payment in full a month ahead of when we could go pick it up, then got the title sent to us in the mail so we could get a license plate ready to use when we drove it home. NO WAY would I do that again - poof my check is gone and I'm left wondering if there's going to be a car on the other end.

I'd recommend doing a swap for full payment in person and also have two copies of a bill of sale. We once sold a car that the new owner never put under their name and it came back to us when they got in an accident without insurance. The bill of sale saved us from having to pay for the other vehicle's damage and the impound fees.

You should ask for a deposit to be sent to you in the mail and set a deadline for pickup & finalization of the sale. You could write up your own bill of sale with the terms, including the deposit and pick up date, mail that to the buyer and have them send it back signed with the deposit $ just to make sure everything is spelled out in writing and clear to both parties.

welly01 · August 2014

justjinny said:

We bought a car sight unseen out of state before (DH is into old VW's & it was a project car). We were stupid about it and I wouldn't do it again even though it all worked out ok.

I think we sent a check for payment in full a month ahead of when we could go pick it up, then got the title sent to us in the mail so we could get a license plate ready to use when we drove it home. NO WAY would I do that again - poof my check is gone and I'm left wondering if there's going to be a car on the other end.

I'd recommend doing a swap for full payment in person and also have two copies of a bill of sale. We once sold a car that the new owner never put under their name and it came back to us when they got in an accident without insurance. The bill of sale saved us from having to pay for the other vehicle's damage and the impound fees.

You should ask for a deposit to be sent to you in the mail and set a deadline for pickup & finalization of the sale. You could write up your own bill of sale with the terms, including the deposit and pick up date, mail that to the buyer and have them send it back signed with the deposit $ just to make sure everything is spelled out in writing and clear to both parties.

This is of course the safest way to do things, but exchanging anything in person is not an option. We are in the south and the buyer is in NJ.

SunAndRain · August 2014

I've bought and sold several private party used cars. The only way I will do these transactions is to meet at the bank where we can get a legitimate cashier's check and notarize the title to be turned over to the new owner at the same time.

What you are describing is not something I'd be comfortable with. Especially considering there are no confirmed plans in place for them to pick up the car. That doesn't make sense to me. You say and in-person exchange isn't possible but...isn't someone going to have to pick up the vehicle?

Surely someone local would be interested in buying the vehicle.

welly01 · August 2014

SunAndRain said:

I've bought and sold several private party used cars. The only way I will do these transactions is to meet at the bank where we can get a legitimate cashier's check and notarize the title to be turned over to the new owner at the same time.
What you are describing is not something I'd be comfortable with. Especially considering there are no confirmed plans in place for them to pick up the car. That doesn't make sense to me. You say and in-person exchange isn't possible but...isn't someone going to have to pick up the vehicle?
Surely someone local would be interested in buying the vehicle.

DH talked to the buyer yesterday and he's arranged for a freight company to come pick up the vehicle. Also, we've had the vehicle listed for months and no interest. Its really a "toy" not a work vehicle. DH is going to send the title in exchange for a cashier's check. He won't allow the truck to be delivered until the cashier's check has cleared. I'm feeling more comfortable about the exchange. We will still have physical possession of the truck until the check clears.

Thank you for all of your feedback!

eyenigh · August 2014

welly336 said:

SunAndRain said:

I've bought and sold several private party used cars. The only way I will do these transactions is to meet at the bank where we can get a legitimate cashier's check and notarize the title to be turned over to the new owner at the same time.
What you are describing is not something I'd be comfortable with. Especially considering there are no confirmed plans in place for them to pick up the car. That doesn't make sense to me. You say and in-person exchange isn't possible but...isn't someone going to have to pick up the vehicle?
Surely someone local would be interested in buying the vehicle.

DH talked to the buyer yesterday and he's arranged for a freight company to come pick up the vehicle. Also, we've had the vehicle listed for months and no interest. Its really a "toy" not a work vehicle. DH is going to send the title in exchange for a cashier's check. He won't allow the truck to be delivered until the cashier's check has cleared. I'm feeling more comfortable about the exchange. We will still have physical possession of the truck until the check clears.

Thank you for all of your feedback!

This is what I was going to suggest. I've sold a couple of cars out of state and that's pretty much exactly what I did. Depending on the amount of the check and/or the bank, it could take longer to clear (I think my old bank had an odd limit where under $5000 was like 7 days but over that was something else) so you may want to check with your bank and let the buyer know what the projected wait time could be so he doesn't get too antsy while he's waiting.

SunAndRain · August 2014

so glad you found a solution! one thing to check off your to-do list!

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